International Citrus & Beverage Conference Presented: Friday, September 19, 2008 Labor Issues Facing the Florida Citrus Industry Michael W. Sparks Executive Vice President/CEO Florida Citrus Mutual www.flcitrusmutual.com
Background Citrus is the state s second largest industry, behind tourism. Roughly generates 76,000 full-time and part-time jobs. Citrus has a $9.3 billion economic impact per year: $3.7 billion wholesale value of fresh and processed citrus products, $1.9 billion in input purchases by the industry, $3.7 billion in consumer spending by industry employees. 2
Labor Crisis U.S. is not producing enough native born workers to fill all the jobs being created in our economy. The United States misguided immigration policy does not make up for the shortfall: Additional workers must come from outside the U.S. U.S hired farm workforce is more than threefourths foreign born. 3
Florida Challenges 2/3 of Florida s voters want tougher action against illegal immigration regardless of the effect. State lawmakers introduced 179 immigration bills addressing employment 1Q2008 more than double the total number from 2007. Florida has the third largest immigrant population in the country estimated 3.5 million. FCM will closely monitor State initiatives during our 2009 legislative session. 4
Current Situation - Enforcement ICE has expanded its worksite activities: In 2007 increased the amount of fines and civil judgments. Nearly 5,000 combined criminal and administrative worksite enforcement arrests. Worksite arrests for 2006 and 2007 averaged nearly 6 times higher than the average for the prior four years. Agriculture involvement in several high profile raids: Swift & Company meat packing plants 1,300 illegal workers. Pilgrim s Pride poultry processing plants 300 employees with one facility in Live Oak, FL. Agri-processors meat packing plant 400 arrests. 5
Administration s Activities Pursuing greater employer accountability, with regard to hiring undocumented workers. August 2007 DHS issued final regulations on its no-match policy delayed at this time. President proposed regulations that would require all government contractors and some subcontractors to use DHS E-Verify employment authorization. 6
Department of Homeland Security Late 2007, announced a series of reforms they will pursue to address border security. Among those reforms are: 18,300 Border Patrol Agents 370 miles of fencing 300 miles of vehicle barriers 105 camera and radar towers Add 1,700 more border patrol agents in 2009. Training hundreds of State and local law enforcement officers to address illegal immigration in their communities. 7
Recent Reform Feb. 2008 - USDOL proposed rules to update H-2A program. Purpose - to provide farmers with an orderly & timely flow of legal workers. Program is too expensive. 2008 - many citrus growers had $1500 invested in a single worker before they even picked a single piece of fruit. Therefore, usage of the program is low. Currently only a little more than 75K workers participate in the H-2A program there are an estimated 600K to 800K undocumented immigrant workers on US farms. 8
Process of H-2A program Submission of application to US DOL. Provide free housing inspected by OSHA. Provide free transportation to Florida and to and from housing and job site. Wages must be the highest of the Adverse Effect Wage Rate (AEWR), the federal or state minimum wage or the prevailing hourly wage rate. Florida s min wage 9-19-08 $6.55 hour Florida s min wage 7-24-09 $7.25 hour AEWR Wage 2008 $8.82 hour 9
Proposed changes supported by FCM Verification of employment eligibility. Allowance of flexibility in piece rates. Provision of worker housing through a voucher. New Adverse Effect Wage Rate Methodology. 10
Proposed changes NOT supported NO Additional advertising requirements and expenses. Increased certification fees. Difficult process for emergency applications. Requiring employers to bear costs of recruiting and facilitation of admission of illegal immigrants. 11
Legislative Fix Comprehensive Immigration Reform is needed. In lieu of that temporary version of AgJOBS named the Emergency Agriculture Relief Act (EARA). Positives Dedicated Congressional champions Positive media coverage Negatives - Organized anti-immigrant movement EARA unfortunately, did not pass in May. In addition - Reduce labor needs via Mechanical Harvesting. 12
Conclusion The labor emergency facing American agriculture threatens our stable and reliable food supply. U.S. Agriculture, Florida Citrus must have a streamlined guest-worker program! Become an FCM Allied Member. Join FCM Grassroots Network Now! Email your contact information to info@flcitrusmutual.com. 13
Thank You! Florida Citrus Mutual 863/682-1111 mikes@flcitrusmutual.com www.flcitrusmutual.com 14